The State Department is requesting $246.2 million for FY2019 to implement the Leadership and Modernization Impact Initiative (hereinafter, the Impact Initiative). The Impact Initiative constitutes the implementation phase of the State Department’s “Redesign” project. Former Secretary Tillerson initiated the redesign in 2017 to implement Executive Order 13781 and Office of Management and Budget (OMB) Memorandum M-17-22, which aim to “improve the efficiency, effectiveness, and accountability of the executive branch.”53

The Impact Initiative constitutes 16 keystone modernization projects in three focus areas: Modernizing Information Technology and Human Resources Operations; Modernizing Global Presence, and Creating and Implementing Policy; and Improving Operational Efficiencies (see Table 5). According to the State Department, these focus areas and modernization projects are derived from the results of the listening tour that former Secretary Tillerson launched in May 2017, which included interviews conducted with approximately 300 individuals that the department said comprised a representative cross-section of its broader workforce, and a survey completed by 35,000 department personnel that asked them to discuss the means they use to help complete the department’s mission and obstacles they encounter in the process.

Of the $246.2 million requested, $150.0 million is requested from the IT Central Fund (which is funded through funds appropriated by Congress to the Capital Investment Fund account and, separately, expedited passport fees) and $96.2 million from the D&CP account to implement modernization projects. Proceeds from the IT Central Fund are intended to implement projects focused on IT, including modernizing existing IT infrastructure, systems, and applications based on a roadmap to be created in FY2018 and centralizing management of all WiFi networks. Funds from the D&CP account are intended to implement modernization projects focusing on Human Resources issues, including leadership development, management services consolidation, data analytics, and workforce readiness initiatives. Given the multiyear timeframe of some of the Impact Initiative modernization projects, the Administration is likely to request additional funds for implementation in forthcoming fiscal years.

Neither the House nor the Senate committee bills or reports specifically mention the Impact Initiative by name. However, both the House and Senate committee bills include provisions that, if enacted, would prohibit the Department of State from using appropriated funds to implement a reorganization without prior consultation, notification, and reporting to Congress.54 The Senate committee bill explicitly provides that no funds appropriated for SFOPs may be used to “downsize, downgrade, consolidate, close, move, or relocate” the State Department’s Bureau of Population, Refugees, and Migration.55

On North Korea: A door to dialogue remains open, but we have made it clear that the regime must earn its way back to the negotiating table. Until denuclearization occurs, the pressure will continue.

Pakistan: We are prepared to partner with Pakistan to defeat terrorist organizations seeking safe havens, but Pakistan must demonstrate its desire to partner with us.

Russia: Absent a peaceful resolution of the Ukraine situation, which must begin with Russia’s adherence to the Minsk agreements, there cannot be business as usual with Russia.

Iran: We will continue to work with our allies and with Congress to explore options for addressing the nuclear deal’s many flaws, while building a like-minded effort to punish Iran for its violations of ballistic missile commitments and its destabilizing activities in the region.

On the redesign:

I am proud of what our State Department and Agency for International Development teams around the world have accomplished this year, and our progress will continue in 2018 and beyond. To that end, we have undertaken a redesign of the State Department to strengthen our teams’ ability to deliver on our mission.

Our redesign doesn’t involve simply shifting boxes on an organizational chart. Our changes must address root problems that lead to inefficiencies and frustrations. By making changes like streamlining our human resources and information technology systems, better aligning personnel and resources with America’s strategic priorities, and reforming duplicative processes, we are giving our people more opportunities to flourish professionally and spend more time confronting the global problems they have dedicated their careers to solving.

When I wake up each morning, my first thought is, “How can I and my colleagues at the State Department use diplomacy to prevent people around the world from being killed, wounded or deprived of their rights?” In spite of the challenges, I remain optimistic about the power of diplomacy to resolve conflicts and advance American interests. My confidence comes from the knowledge that our efforts are carried out daily by patriotic and dedicated State Department employees who make sacrifices to serve with patience and persistence and who, by advancing democratic values the world over, are protecting our citizens’ rights to life, liberty and the pursuit of happiness.

Should we thank the new R Undersecretary Steve Goldstein for this? A bit underwhelming after a tumultuous year around the world, and a year of ‘what the heck’ is going on in Foggy Bottom. Folks can be forgiven if you let out a deep sigh. We did, too. Tillerson did not mention them in his op-ed but we’re hearing about the “tiger teams” and the “keystone projects” that are in some of our readers’ future as 2018 marches in.